1. The Internal Revenue Service (IRS) in the United States adjusts federal tax rates annually based on inflation, and the adjustments for 2023 are particularly significant due to the highest inflation rate in 40 years.
The U.S. income tax follows a progressive system, where higher incomes are subject to higher tax rates. For individual taxpayers with income below $11,000, the tax rate is 10%. For income above $11,000 and up to $44,725, the rate is 12%. For income above $44,725 and up to $95,375, the rate is 22%. For income above $95,375 and up to $182,100, the rate is 24%. For income above $182,100 and up to $231,250, the rate is 32%. For income above $231,250 and up to $578,125, the rate is 35%. For income above $578,125, the rate is 37%. If married couples file jointly, the tax rates for each income bracket will be doubled.